Netflix Fourth Quarter Fiscal Year 2015 Outlook

netflix stock, netflix earnings

Lets see how the streaming media giant performs in the the last quarter of the current fiscal year.

Netflix Inc., the streaming media giant is just hours away from reporting its fourth quarter’s earnings financial results of fiscal year 2015. The media company is reported to announce the financial results after the market closes on January 19, 2015.

A number have analysts have certain expectations from the stock and earnings of the streaming video on demand leader. According to a poll by Bloomberg, the earnings per share that the company is likely to report are $0.021 which is evidently a few points higher than what was predicted by the company itself. The video streamer projected that the EPS will be somewhere around $0.02. Sales, on the other hand, are expected to be $1.83 billion while Netflix believes that the revenue will be somewhere close to $1.67 billion.

2015 has been much of a roller coaster ride for the media organization as it was an expansion spree. Due to this international expansion strategy, many analysts have provided a pessimistic outlook on the year ahead. Even though the company saw an impressive growth of as much as 135.45% during the previous year, the analysts think that is bound to see a decline in numbers.

Taking a look on the expansion strategy, it is safe to say that the company has incurred more cost than profits during this spree. It has planned to be in over 200 countries by the end of 2016; and the streaming leader has managed to surpass this number- Just last week the Vice President of Content Delivery Architecture, David Fullager stated that the service is not available in over 190 countries; so it is only 10 more countries away from its target.

The Asian expansion started off with Japan back in August while in October it made its presence in the European region as well – initially it launched its services in Spain, Italy and Portugal. Even though Netflix has managed to over most of the largest countries in the world, it is yet to make its entry in the Chinese market.

According to the projections by The Street, the video media streaming organization has managed to add 3.5 million subscribers from all over the world and it is highly likely that for the fourth quarter, it will be able to give a number of 74 million. The company had itself stated that it is expecting that by the end of the current fiscal year, it is expecting the subscriber number to be somewhere close to 74 million. Additionally, it is also expecting an added 1.65 million users from within the United States.

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